New York Life reports increase in 2009 life insurance sales despite downward industry trends

New York Life reports increase in 2009 life insurance sales despite downward industry trends

Despite an industry-wide decline in life insurance sales during 2009, New York Life announced on Thursday that it had bucked the trend and signed a record number of policies over the course of the year.

Regarding U.S. life insurance sales, New York Life reported a 14 percent increase in sales through all of their distribution channels over the course of 2009. Additionally, the company reported they had added more than 3,600 agents, reaching a new single-year record for recruits, and that their 11,800 licensed agents had increased sales by 16 percent to exceed $1 billion, a new record as well.

Mark Pfaff, the executive vice president of New York Life, said that the increase in life insurance sales were due in part to the Great Recession, which led to an increased focus on personal financial responsibility for consumers and some businesses.

"This led to increased attention to strong and stable companies that offer safe and secure products like permanent life insurance," said Pfaff. "As a result we saw increases in sales, a rise in term-to-permanent conversions, and increased utilization of the living benefits of permanent policies to rebuild their wealth through cash additions, or to tap into their cash value to provide funds that could carry them through until they got back on their feet."

The insurance company also reported that their conversions of term policies to permanent policies increased 39 percent from 2008, while borrowing from permanent policies increased by 30 percent in 2009.